A dispute between Nizar Mohammad al-Adsani, the CEO of state-owned oil company Kuwait Petroleum Corporation (KPC), and the country’s Oil Minister Ali al-Omair is unsettling contractors and increasing uncertainty in the Kuwaiti energy sector, according to industry sources.

The dispute is focused on efforts by the ministry to appoint new members to KPC’s board.

Al-Adsani has said the Oil Ministry does not have the legal power to make appointments.

“The current conflict between the CEO of KPC and the Oil Ministry is the worst the country has seen in years,” says one industry source.

So far projects haven’t been impacted, but it is causing uncertainty and worrying contractors according to local agents.

KPC is a government-owned holding company and has eight subsidiaries, including the upstream operator Kuwait Oil Company (KOC), and downstream operator Kuwait National Petroleum Corporation (KNPC).